Good News | The execution and reconciliation case of a key offshore engineering project in the Tongzhouwan Demonstration Zone Court won the first prize for excellent execution cases in provincial courts

Release time：

2023-10-14

Good News | The execution and reconciliation case of a key offshore engineering project in the Tongzhouwan Demonstration Zone Court won the first prize for excellent execution cases in provincial courts

Key Offshore Engineering Project Execution and Settlement Case

Executive Summary

The execution debtor is a key supporting enterprise for an offshore wind power generation project, with good market prospects. Hundreds of millions have been invested in the early stages of construction, but due to overdue construction and material payments, the company was sued and became the subject of enforcement, putting the project at risk of failure. The executing court learned that a third-party company was willing to cooperate in developing the project and proactively established a platform for installment debt settlement, ultimately achieving the execution goal of allowing the project to continue and protecting the creditors' interests.

Basic Case Facts

Applicant for Enforcement: A construction engineering company and other creditors

Execution Debtor: A certain energy technology company

Executing Court: Nantong Tongzhouwan River-Sea Synergistic Development Demonstration Zone People's Court

The execution debtor, a certain energy technology company, is a professional enterprise in Nantong, Jiangsu Province, engaged in marine equipment, offshore wind power, and large-scale bridge steel structure manufacturing. In June 2020, it entered Nantong Tongzhouwan as a key supporting enterprise for an offshore wind power generation project. After the project's completion, it was expected to generate over 100 million yuan in annual taxes and provide employment for thousands of people. From November 2021, due to various factors, it failed to repay multiple overdue construction debts. As of February 2023, the executing court had accepted a total of 14 lawsuits, 11 asset preservation cases, and 7 initial enforcement cases involving the company. Other courts had also accepted 10 enforcement cases against the company.

The executing court's investigation and control revealed that the certain energy technology company only had more than 400,000 yuan in its accounts. Apart from the land use rights for the construction project, the buildings and structures under construction, and several cars, no other executable assets were found. Most of the main assets had multiple mortgages, and forced liquidation could not satisfy all creditors. During the execution process, it was discovered that a large company in Xiamen, Fujian Province, engaged in the same industry, was willing to cooperate in development, and both parties had reached a framework agreement. After learning this "good news," the executing court immediately urged the certain energy technology company to develop a feasible installment debt repayment plan and communicated and coordinated with each creditor. Through various analyses and guidance on the advantages and disadvantages of enforcement, the two parties finally reached an execution settlement agreement to repay all debts in installments by the end of 2024. Currently, the certain energy technology company has fulfilled its payment obligations for three installments, repaying 30% of the overdue debts, completing 70% of the project construction, and is expected to be completed and put into production by early next year.

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